• Industrial metals (copper, aluminium, nickel, etc.) daily review (October 01, 2015)

    Base Metals

    Base metals on the LME traded higher yesterday as bearish investors closed out positions at the quarter-end and ahead of Chinese holidays. Further, sharp rebound in shares of hard-hit commodity group Glencore supported the base metals pack.

    Nickel gained the most yesterday by 4.6 percent and touched $US10400 a tonne levels, the strongest since September 11.

    On the MCX, all the base metal prices except Aluminium and Lead traded higher in line with international trends.


    LME Copper prices jumped by 3.8 percent and rebounded from six year lows hit earlier in the week as supply disruptions from top producing countries Chile and Peru lift sentiment in beaten down sector. Chile's second-biggest copper mine Collahuasi, owned by Anglo American and Glencore, said on Tuesday it planned to cut output by 30,000 tonnes. Glencore announced its idling mines in Zambia and the DRC that would remove more than 400,000 from the market.

    Further, Inventories in China's bonded warehouses dropped 22 per cent in September from August as arbitrage profits widened.

    MCX copper prices traded higher by 2.9 percent and closed at Rs.333/kg but Rupee appreciation capped shrp gains.


    We expect Copper prices to trade higher today as supply disruption concerns from top producing countries Chile and Peru will be supportive. However, conflicting reads on the state of the Chinese manufacturing sector will restrict sharp gains. Also, volumes will be low owing to Chinese weeklong National holiday starting today.

    On the MCX, copper prices are expected to trade higher today in line with international trends.

    Contributed by Angel Broking
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